HR Connect Asia Pacific

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1 Best Employers Trends in Hong Kong - Journey to High Performance By Andy Leung, Senior Consultant, and Project Manager of Best Employers Study, Aon Hewitt, Hong Kong In the Best Employers 2.0 Hong Kong 2013 Study, CEOs in Hong Kong reported People issues as their top business challenge (58%), together with Market Factors. These CEOs believe that in the next three years, their organizations will face the following people issues: The organization s ability to retain talents Availability of people management capability Availability of management capability to support business operations Availability of leadership and adequate leadership pipeline. The Aon Hewitt Best Employers Study Aon Hewitt first began the Best Employers Study in Asia Pacific in 2001 to: Provide insights into how to create real competitive advantage through people; Explore what makes a workplace of choice; and Identify the Best Employers in the region. Since the inception of the Aon Hewitt Best Employers Study, we have conducted seven studies across Asia Pacific and Hong Kong. Data was collected from the CEOs and HR Directors of all participating organizations. The study includes organizations from all key industries, with the strongest industry representation coming from Hotels, Restaurants & Leisure and Transportation. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 1

2 The Journey to Becoming a Best Employer Aon-Hewitt s construct for what constitutes a Best Employer is based on four characteristics: High Employee Engagement Engaged employees: Speak positively about their organization; Intend to stay with the organization; and Feel motivated to exert extra effort to meet business goals Compelling Employer Brand Organizations with a compelling employer brand: Are well-known and have a good reputation in the market; Ensure that people joining the company experience what they had imagined before recruitment; and Have employees who are proud of being part of the organization. Effective Leadership Organizations with effective leaders have: Senior leaders who provide a clear vision for the organization; Employees who believe that their senior leaders make good business decisions; and Employees who feel treated as a valued asset and think that communications from their senior leaders are open and honest. High Performance Culture In organizations with high performance cultures: Employees are aware of their goals and how they contribute to the organization s overall performance; Employees share in the overall success of the organization; and There are excellent career and employee learning opportunities. In addition, Best Employers differentiate themselves by virtue of their clear organizational alignment between the business strategy, HR programs and their implementation. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 2

3 High Employee Engagement Aon Hewitt defines engagement as the state of emotional and intellectual commitment to an organization that motivates employees to do their best work, or the extent to which an organization wins the hearts and minds of its employees. Our research shows that high employee engagement not only delivers greater shareholder value, but also reduces staff turnover, and improves customer satisfaction. The Best Employers 2.0 Hong Kong 2013 Study has found that while overall employee engagement average scores in Hong Kong market have remained stable, in the 50s, over the past 5-6 years, the Best Employers have improved from the 70s to the 80s. While the Best Employers have enjoyed significant improvement in their engagement scores this year, the middling average engagement scores shown by most companies indicate the need for further improvements in this area. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 3

4 Compelling Employer Brand An employer brand includes the promise an employer makes to existing and prospective employees and articulates the unique employee experience they will have with the organization. Best Employers define and deliver an employee experience that is unique and compelling, one that attracts, motivates and retains people for their business. In our study results, we found that 62% of employee participants agreed that their organization s employer brand was consistent and compelling. The 2013 study included a Net Promoter Score (NPS) index to gauge the strength of word of mouth by measuring the likelihood that an employee would recommend their organization. To create this score, we measured responses to the statement I would not hesitate to recommend this company to a friend seeking employment. The Net Promoter Score index for Hong Kong showed an overall score of 31%. Over half of employees surveyed said that they were likely to recommend their organization to a friend seeking employment. However, one in five said they would not. In comparison, Best Employers scored more than twice the participant average score. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 4

5 Effective Leadership Organizations that have effective leadership practices demonstrate stronger financial results over the long term. Aon Hewitt believes that effective leadership is one of the most valuable competitive advantages available to organizations today. Leadership plays a critical role in achieving a highly engaged workforce. While employees are engaged by factors like career opportunities, performance management and work processes, the paramount role that leadership plays in developing and maintaining employee engagement should not be undervalued. Our Best Employers 2.0 Hong Kong 2013 Study showed that 69% employees felt that their organization demonstrated effective leadership. In comparison, only slightly more than half of employees surveyed perceive senior leadership as effective. Only 60% of the employees feel that their senior leaders demonstrate organizational values and are open and honest in their communications. Interestingly, when asked the same questions, at least 10% more of the CEOs and senior leaders responded positively. There is a clear disconnect between senior leaders and employees perceptions in this area. CEO/Senior Leaders Employees Difference I see strong evidence of effective leadership from our senior leaders. Our senior leaders consistently demonstrate our organization s values through their behaviour and actions Our senior leaders treat employees as this organization s most valued asset. Our senior leaders are open and honest in communication 64% 54% 10% 70% 60% 10% 74% 59% 15% 76% 57% 19% Source: Aon Hewitt Best Employers 2.0 Hong Kong 2013 Study Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 5

6 High Performance Culture Based on Aon Hewitt s research, high-performance organizations have clear accountability for strategic goals, which are well communicated and understood by their employees. This robust alignment across the employee hierarchy helps them not only to reward and recognize their prime talent, but also to provide challenging growth opportunities for enterprising employees that meet the future needs of the organization. Of those employees who participated in our study, approximately two-thirds felt that their organization exhibited a high-performance culture. Career Management. Best Employers are clearly stronger when it comes to managing careers. They scored 30% higher than the market average for the statement This organization offers excellent career opportunities to employees who are strong performers. Most participating organizations implement practices such as advertising internal job postings and integrating career development goals into performance appraisals. Best Employers, however, also define career development frameworks and processes, train their managers on how to conduct career conversations, and include formal education programs as part of their careers. Conclusion In view of the current economy, Hong Kong s highly competitive employment market and war for talent, as well as growing expectations from CEOs to raise the bar on Human Resources, the future will be challenging, but exciting, for HR professionals. The Aon Hewitt Best Employers 2.0 Hong Kong 2013 study provides an insightful contrast, backed by sound data analysis and solid statistics, between Best Employers and market.average. Why not start your company on the journey to become a Best Employer? Contact Andy Leung is Senior Consultant with Aon Hewitt in Hong Kong. He is also Project Manager of Aon Hewitt s Best Employers Study for Hong Kong. Andy can be reached at andy.leung@aonhewitt.com. Aon Hewitt Singapore Pte. Ltd. Co. Reg. No.: D 6